Nomura Adjusts Fed Rate Cut Forecast to September

In a recent analysis, Nomura Holdings Inc. has revised its expectations for the United States Federal Reserve's monetary policy, now anticipating the initiation of interest rate cuts as early as September. This adjustment comes in response to recent economic indicators, including a softer labor market and consistent inflation figures.

Details of the Forecast

According to Nomura's economists, the Fed is likely to implement a 25-basis-point reduction in September, followed by another similar cut in December. This represents a notable change from their previous projections, which had foreseen such monetary easing occurring later in the year.

Economic Indicators Influencing the Shift

The revision is primarily attributed to weaker-than-expected labor market data and a steady inflation report, suggesting that the Fed may adopt a more accommodative stance to support economic growth.